RBC Capital Markets to Pay $1M Over Unsuitable High-Yield Bond Concentration in Customer Accounts
RBC Capital Markets Settlement With FINRA Includes a Fine and Restitution
RBC Capital Markets has reached an agreement with FINRA in which the broker-dealer will pay $1M to resolve allegations of overconcentration in customers’ accounts involving high-yield bonds. Without denying or admitting to the self-regulatory organization’s (SRO’s) findings, RBC consented to a censure, a $550K fine, and more than $456K in restitution.
According to FINRA, the brokerage firm did not identify over 100 client accounts with conservative profiles that should have been reviewed for a possible unsuitable concentration of high-yield bonds.